National Futures Association (NFA) recently announced that it has levied a fine of $700,000 against Peregrine Financial Group, Inc., a Futures Commission Merchant and Forex Dealer Member of NFA with headquarters in Cedar Falls, Iowa and Chicago, Illinois.
According to the NFA release, Peregrine maintains branch offices in California, Florida, Illinois, Michigan and New York. The Decision, issued by NFA’s Business Conduct Committee, is based on a Complaint filed in February 2012 and a settlement offer submitted by Peregrine.
The Complaint alleged that Peregrine failed to supervise four of Peregrine’s Guaranteed Introducing Brokers (GIBs): Clash Financial, LLC, Oxford Trading Group, Inc., California Capital Trading Group, LLC, and Patriot Financial Markets, LLC. Complaints issued by the NFA during 2010 and 2011 alleged that Clash, OTG and CCTG made trade recommendations that maximized commissions without regard for the best interests of their customers and that all four guaranteed introducing brokers made deceptive sales solicitations. The Complaint also alleged that Peregrine failed to diligently supervise activities related to the firm’s forex customers’ accounts by failing to ensure the implementation of effective anti-money laundering (AML) procedures related to some of those accounts.
In addition to the $700,000 fine, Peregrine must retain an independent consultant to review Peregrine’s existing procedures for supervising its GIBs and retail customer accounts and Peregrine is prohibited from entering into guarantee agreements with any IBs for a period of two years. Peregrine must also designate a full-time AML officer.
The foregoing information which is available on NFA’s website is being provided by The White Law Group.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.